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Last Updated: 10/4/2018

Updated Local Sales Tax Requirements for Minnesota Sellers

If you make sales into local jurisdictions that have local sales taxes, you must collect those taxes even if you are not located there. This may require you to register, collect, and remit additional local taxes on your sales and use tax return.

Why is this changing now?

On June 21, 2018, the U.S. Supreme Court ruled in South Dakota v. Wayfair that physical presence is not required for sellers to be responsible for sales tax collection. All Minnesota sellers – regardless of their location – must collect state and local sales taxes based on the location of their customer.

What does this mean for me?

You must collect local tax when you ship taxable items into a local area, including all sales made using the internet, mail order, or telephone. Continue collecting local tax when customer’s pickup items in a local area and when you perform taxable services in a local area.

How do I register to collect local sales taxes?

We made improvements to the e-Services Sales and Use Tax account to simplify the process of registering for local taxes. With these updates, you will be able to quickly add all Local Tax and Other Taxes at one time.

You can also add individual taxes while filing your sales and use tax return.

For details and instructions, see What’s New – e-Services

How do I calculate local sales taxes?

We offer resources to help you determine the total tax rate (state and local) on our website. You can:

  • Use our online Sales Tax Rate Calculator. If you have a street address, it will identify the nine-digit ZIP code for you. Best for use when you have one or two addresses at a time.
  • Download our Sales Tax Rate Spreadsheet to use at your desk. You must know the nine-digit ZIP code. Best for use when you have multiple nine-digit ZIP Codes to look up at one time.
  • Download our Sales Tax Rates and Boundaries Table to program rates into your point of sale system.

How to report local taxes

Report local taxes when you file your Minnesota Sales and Use Tax return. Local tax amounts are reported separately from the state sales tax.

When do I need to start collecting local taxes even if I am not physically present?

You must begin collecting no later than the beginning of your next filing cycle:

  • Monthly and Quarterly filers: October 1, 2018
  • Annual filers: January 1, 2019

Questions

For more information about local taxes in Minnesota, see:

If you have questions about local sales tax requirements, please contact us.